9911796707
TMI Blog2014 (7) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... w in holding that the assessee had been granted registration earlier and all these facts existed at that time despite the fact that while passing order u/s 12-AA (3) the CIT had categorically held that the activities of the society are not entirely Charitable and not in accordance with the aims and objects of the society?" Heard Sri Dhananjay Awasthi, learned counsel for the appellant and Sri Kunal Ravi Singh, learned appearing on behalf of the respondent. With the consent of the parties, the present appeal is being disposed of at this stage. The respondent is a Society registered under the Societies Registration Act since 1991. It appears that registration under Section 12A read with Section 12AA of the Act has been granted to the Society. The Society has claimed exemption under Section 10 (23C) (vi) of the Act on the income for the assessment years 2004-05 to 2006-07 & 2007-08 to 2009-10 on the ground that the Society was imparting education. The said claim has been rejected by the Chief Commissioner of Income Tax, Allahabad vide order dated 25.3.2008. Against the said order, Writ Petition No. 1210 of 2009 has been rejected vide order dated 3.2.2010 and the order of the Chief ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of religion, race, community, language or social status. 4(f) To provide residential accommodation, equipment and maintenance either free of cost or for consideration to nuns, priests, teachers doctors, nurses, pupils, staff servants, the superannuate, orphans and other connected with the work of the Society and to educate, train, equip and assist financially and otherwise in the education, training and equipment of orphans, doctors, nurses teachers, nuns, priests and other staff and personnel for the purposes of the society. 8.3 It is pertinent to mention here that the applicant society was registered in the office of Societies of Registrar in the year 1991 and since then, the clause that "the complete control over all educational institutions of the society shall vest in the Governing Body of the Sisters of Our Lady of Providence" is in existence. It was only when the undersigned pointed out that such clause is in contravention of the Societies Registration Act that the counsel made up his mind to move an application before the Registrar of Societies for amendment of the said clause. Thus from the above it appears that the very existence of the society on the date of applicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich had in turn, spent it on purposes other than educational. The case law cited by the assessee society is clearly not applicable to its case as the matter in essence that was deliberated upon and decided by the Hon'ble High Court related to withdrawal/cancellation of exemption u/s 12AA(3) of the I.T. Act 1961 to a charitable society with retrospective effect. Therefore, I am of the opinion that the funds of the assessee society are being diverted and spent/utilized on purposes other than educational, through another society to which contributions are being made. Therefore, I am of the opinion that the activities of the society are not entirely charitable in nature and also, the same are not being carried out in accordance with the aims and objects of the society. Therefore, I hereby cancel the registration of the society u/s 12AA(3) of the I.T. Act 1961 as issued by the CIT, Varanasi dated 30.6.2000. All necessary consequences of such cancellation to follow accordingly." Being aggrieved by the order, the assessee (hereinafter referred to as 'respondent') filed an appeal before the Tribunal. The Tribunal by the impugned order allowed the appeal with the following f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whose compliance depends on events that have not taken place on the date of the application for initial approval." Learned counsel for the appellant submitted that the writ petition against the order of the Chief Commissioner of Income Tax, Allahabad rejecting the exemption under Section 10(23C)(vi) has been rejected, therefore, the order of the Chief Commissioner of Income Tax, Allahabad has become final. The Chief Commissioner of Income Tax, Allahabad has doubted the activities of the society being charitable. The Chief Commissioner of Income Tax, Allahabad also found that the activities of the society ceased to be charitable. On the facts and circumstances, the Chief Commissioner of Income Tax, Allahabad has arrived to the conclusion that the activities of the institution are not genuine and are not being carried out in accordance with the objects of the society. Learned counsel for the respondent submitted that for the purposes of grant of registration under Section 12A to the trust or the institution, the Commissioner has to satisfy about the genuineness of the activities of the trust or the institution. He submitted that under sub-section (3) of Section 12AA of the Act, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss an order in writing cancelling the registration of such trust or institution. Provided that no order under this sub-section shall be passed unless such trust or institution has been given a reasonable opportunity of being heard. The registration under Section 12A of the Act can be sought either by the trust or by the institution. It appears that for the purposes of claim of exemption under Sections 11 and 12 of the Act, the registration under Section 12A of the Act is necessary as provided by Section 12A of the Act. Section 12AA(1) provides that the Commissioner, after satisfying himself about the objects of the trust or institution and the genuineness of its activities, he shall pass an order in writing registering the trust or institution. Sub-section (3) of Section 12AA of the Act provides that if the Commissioner is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution, he shall pass an order in writing cancelling the registration of such trust or institution. Therefore, for the cancellation of registration, the satisfaction of the Commissioner to the extent that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
